Readers’ forum: HMRC’s attitude to failed R&D claim

A client has come to me – rather shamefaced – to tell me that their company used the service of a research and development (R&D) adviser who conjured up a claim more or less out of thin air which has no substance at all. The client received no paperwork from the ‘adviser’ and has no idea how the claim was put together. All they know is that the company received a refund from HMRC after the adviser had taken their slice out of it. Now HMRC has started to enquire into the return.

There is no possible way in which this company could have incurred expenditure on anything remotely resembling R&D and the client accepts that the claim will have to be withdrawn and a payment will have to be made to HMRC – including the element taken as a fee.

The client is resigned to this but is concerned...